Half Yearly Investment Update

As of 31 August 2019 download PDF

Capital for Colleagues plc / EPIC: CFCP / Market: NEX / Sector: Investment 

25 September 2019

CAPITAL FOR COLLEAGUES PLC(‘Capital for Colleagues’ or the ‘Company’) HALF YEARLY INVESTMENT UPDATE  

Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, is pleased to announce an investment update in respect of the six months ended 31 August 2019. 

 

Key Statistics for the six months:

 

  • Portfolio comprised of 18 unquoted EOBs at the end of the six months (28 February 2019: 17)
  • Net Asset Value (‘NAV’) of £7,753,961 (28 February 2019: £7,419,833)
  • NAV per share increased by 4.5% to 50.21 pence in the six-month period (28 February 2019: 48.05 pence per share)

 

Material developments in the six months:

  • A loan investment of £150,000 was made to enable South Cerney Outdoor Limited (“SCO”) to acquire the business and assets of South Cerney Outdoor, with an Employee Owned Trust being the major shareholder on completion. Based near Cirencester in Gloucestershire, SCO is focused on creating outdoor experiences that inspire personal challenge, fun, growth and adventure for the whole community, regardless of age or ability. Activities are available on an individual or group basis and include water sports and land-based activities at SCO’s leasehold site which cover 53 acres, 47 acres of which are a lake.
  • The Company has agreed to sell its equity interest in Cotswold Valves Limited (“CVL”) for its acquisition cost of £220,000 in cash and to re-schedule all existing loans from CVL and its subsidiary totaling £450,000. The Directors of the Company expect that the full consideration for the disposal and the amounts outstanding on the loans will be received by the Company in the course of the next three years.

 

Further information on the Company’s investment portfolio is set out below.

UNQUOTED INVESTMENTS

 

As at 31 August 2019, the Company’s portfolio of unquoted investments was valued at £7,047,060 and comprised 18 companies operating across a range of sectors, as set out below:

 

 

Industrials (value: £4,615,290; 65.49% of Portfolio)

Construction and Materials

Civils Store Limited

Ecomerchant Natural Building Materials Limited

Employee Owners Group Limited

Merkko Group Limited

TPS Investment Holdings Limited

 

 

 

Industrial Transportation

Place 2 Place Logistics Limited

 

 

Support Services

Anthesis Consulting Group Limited

Cotswold Valves Limited

Hire and Supplies Limited

Office for Public Management Limited

Flow Control Company Limited

Castlefield Corporate Advisory Partners Limited

 

Engineering

TG Engineering Limited

 

Leisure & Travel (value: £150,000; 2.13% of Portfolio)

 

Recreational Services

South Cerney Outdoor Limited

 

 

Media (value: £489,636; 6.95% of Portfolio)

 

Exhibition Centres

The Homebuilding Centre (Holdings) Limited

 

 

 

 

 

Technology (value: £1,792,134; 25.43% of Portfolio)

Software & Computer Services

2C Services Limited

Bright Ascension Limited

Computer Application Services Limited

 

 

 

 

The loans and investments made by the Company to unquoted EOBs are aimed at delivering equity-like returns.  Each loan or investment is tailored to the individual investee company’s operating performance and specific working capital needs.

The Directors believe that the unquoted EOBs in the Company’s portfolio currently generate total turnover of around £99 million per annum and support approximately 854 jobs.

Total Unquoted Investments (including short term loans) as at 31 August 2019

Cost: £5,299,596

Valuation (including capitalised costs): £7,047,060

 

Commenting on the investment update, Alistair Currie, Chief Executive of the Company, said:

 

“I am pleased with the further progress of the portfolio and I am confident that Capital for Colleagues and its shareholders will benefit as the portfolio matures and as we continue to expand our exposure to the exciting EOB sector”.

 

BASIS OF VALUATION

 

Each of the unquoted investments is included at the Directors’ assessment of fair value, in accordance with International Private Equity and Venture Capital Guidelines. The previous policy of providing a general provision equivalent to 2% of the value of the unquoted investments has now been discontinued in favour of a more specific & prudent review of individual investments.

 

Account is taken of any potential taxation liability in respect of the increase in value of investments on an annual basis, as at the Company’s year-end.

 

The Directors of the Company are responsible for the contents of this announcement.

 

**ENDS**

 

For further information, please visit www.capitalforcolleagues.com or contact:

 

CAPITAL FOR COLLEAGUES PLC

Richard Bailey, Chairman

Alistair Currie, Chief Executive

 

 

01985 201 980

PETERHOUSE CAPITAL LIMITED

Mark Anwyl

Duncan Vasey

020 7469 0930

 

Capital for Colleagues

Capital for Colleagues is an investment company focused on the UK EOB sector. The Company has a proven management team, with a wide network of contacts and affiliates, as well as established access to investment opportunities, enabling the Company to execute its strategy and capitalise on EOB-focused investment opportunities. In addition, the Company educates and assists companies that are looking to launch employee ownership schemes, advising them, amongst other things, on how to secure investment and achieve their objectives.

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.